Big Companies Insourcing Work As AI Boosts In-House Productivity
#175Ethan Mollick@EMOLLICKOne trend that I think you might start to see at big companies is insourcing via hiring: why pay so many outside vendors (legal, marketing, software vendors) when you can hire in-house and harness AI productivity gains yourself?
Talked to executives already going this route...
Another useful feature is this process can happen gradually as you reduce outsourced work as contracts end for internal talent. And company executives like this better because they can grow their own teams while still reducing costs & figuring out sustainable advantages from AI.
Ethan Mollick@emollickOne trend that I think you might start to see at big companies is insourcing via hiring: why pay so many outside vendors (legal, marketing, software vendors) when you can hire in-house and harness AI productivity gains yourself? Talked to executives already going this route...
You don't need to move everything internally, so you can still gain from vendor specialists when needed, just less often
This is similar to how most companies are not going to want to replace all their SaaS products with AI soon, it is easier to use vendors, but no longer always
Ethan Mollick@emollickAnother useful feature is this process can happen gradually as you reduce outsourced work as contracts end for internal talent. And company executives like this better because they can grow their own teams while still reducing costs & figuring out sustainable advantages from AI.
Its a reason why there may be increased demand for some jobs disrupted by AI: when your local midsized insurance broker wanted software, there was no way they could even consider building internally. Now it may be worth getting a few in-house developers & let them solve problems.
Ethan Mollick@emollickYou don't need to move everything internally, so you can still gain from vendor specialists when needed, just less often This is similar to how most companies are not going to want to replace all their SaaS products with AI soon, it is easier to use vendors, but no longer always